Short of cash for an urgent payment? Don't rush! BNPL & credit card features you must know

Buy Now Pay Later vs Credit Card: Many e-commerce sites like Amazon and Flipkart are soon going to announce Independence Day sales in the country, in which they will provide many attractive deals to the customers. These deals usually include discounts, cashback, and buy now, pay later options, which allow customers to buy goods now and pay later. With these offers, many people may wonder whether it is better to use a credit card or opt for buy now, pay later, especially because using the latter will not affect their credit card limit.

Similarities Between Credit Cards and Buy Now Pay Later

Both credit cards and Buy Now Pay Later options give you some time to make payments. Each method has a set credit limit, and exceeding it is not allowed. If you fail to pay on time, you may incur penalties with both options.

Buy Now Pay Later vs Credit Card: Unique features of each

Credit cards offer reward points and sometimes cashback for purchases, which are not available with Buy Now Pay Later services. Credit cards typically provide a 30-50 day period to pay off the balance. In contrast, Buy Now Pay Later options often allow you to divide your payment into a few installments, sometimes without additional charges. Additionally, credit cards may offer no-cost EMI options.

Buy Now Pay Later vs Credit Card: Which option should you choose?

If you have a credit card, it is generally better to use it for online shopping because you can earn cashback and reward points, and may also have access to no-cost EMI options. However, if you don't have a credit card or have reached your credit limit, Buy Now Pay Later can be a good alternative.